Strategies, Markets and Governance: Exploring Commercial and Regulatory Agendas

361 Pages·2008·2.38 MB·English

by  Ralf Boscheck

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Strategies, Markets and Governance
Strategies,MarketsandGovernanceaddressesgovernanceconcernsatfirm,industry,
country and international levels. How do regulatory authorities deal with new
business models, organizational structures and blurring market relations? What
limitsregulatorycontrolandwhataretheimplicationsofcorporateself-regulation?
Whatdrivesthespreadofnewregulationandwhatlimitsitseffectiveness?Howdoes
‘the organized public’ shape political and corporate interests and what is its legiti-
macyandimpactonbusiness?Howdocorporatestrategies turn tighter regulation
intoprofitopportunities,deliverpublicbenefitsinthefaceofpredatorystatesand
whenisexittheonlyoptionleft?
Thecontributingauthorsareleadingresearchersongovernanceandpublicpolicy,
and present assessments of these questions in a variety of institutional and inter-
nationalcontexts.Thebookisideallysuitedtoadvancedstudentsofbusiness,public
policyandbusinessregulation,aswellaspractitionersandpolicymakers.
Ralf Boscheck is the Lundin Family Professor of Economics and Business Policy
at IMD (International Institute for Management Development) in Lausanne,
Switzerland.
ChristineBatruchisVicePresident,CorporateResponsibility,LundinPetroleum.
StewartHamiltonisProfessorofAccountingandFinanceatIMD.
Jean-PierreLehmannisProfessorofInternationalPoliticalEconomyatIMD.
CarylPfeifferisDirector,CorporateFuelsandBy-Products,e.onUS.
Ulrich Steger holds the Alcan Chair of Environmental Management at IMD and is
DirectorofIMD’sresearchprojectonCorporateSustainabilityManagement,CSM.
MichaelYazijiisProfessorofStrategyandOrganizationatIMD.

STRATEGIES, MARKETS
AND GOVERNANCE
Exploring Commercial and Regulatory Agendas
Ralf Boscheck
with
Christine Batruch
Stewart Hamilton
Jean-Pierre Lehmann
Caryl Pfeiffer
Ulrich Steger
Michael Yaziji
CAMBRIDGEUNIVERSITY PRESS
Cambridge, New York, Melbourne, Madrid, Cape Town, Singapore, São Paulo
Cambridge University Press
The Edinburgh Building, Cambridge CB28RU, UK
Published in the United States of America by Cambridge University Press, New York
www.cambridge.org
Information on this title: www.cambridge.org/9780521868457
© Ralf Boscheck, Christine Batruch, Stewart Hamilton, Jean-Pierre Lehmann, Caryl Pfeiffer,
Ulrich Steger and Michael Yaziji 2008
This publication is in copyright. Subject to statutory exception and to the provision of
relevant collective licensing agreements, no reproduction of any part may take place
without the written permission of Cambridge University Press.
First published in print format 2008
ISBN-13 978-0-511-39715-8 eBook (NetLibrary)
ISBN-13 978-0-521-86845-7 hardback
ISBN-13 978-0-521-68845-1 paperback
Cambridge University Press has no responsibility for the persistence or accuracy of urls
for external or third-party internet websites referred to in this publication, and does not
guarantee that any content on such websites is, or will remain, accurate or appropriate.
Contents
ListofFigures,BoxesandTables pageviii
Acknowledgments x
Preface xi
NotesonContributors xiii
Part I Introduction and overview 1
1 Strategies,marketsandgovernance
RalfBoscheck 3
Part II Firm-level 33
2 Competitiveadvantageandtheregulationofdominantfirms
RalfBoscheck 35
3 Delegatingregulation:Supply-chainmanagement,partnering
andcompetitionpolicyreforms
RalfBoscheck 52
4 Diffusionofcorporategovernanceregulation:France,Germany,
theUKandtheUSA
UlrichSteger 69
5 CorporategovernanceafterEnronetal.
StewartHamilton 88
vi Contents
6 Tacklinghealthcarefraud!?
RalfBoscheck 104
7 Watchdogandproxywarcampaignsagainstfirms
MichaelYaziji 115
8 Oilandconflict:LundinPetroleum’sexperienceinSudan
ChristineBatruch 134
Part III Industry-level 149
9 Howthecleanairinterstaterulewillaffectinvestmentand
managementdecisionsintheUSelectricitysector
CarylPfeiffer 151
10 EUwaterinfrastructuremanagement:Nationalregulations,
EUframeworkdirectivesbutnomodeltofollow
RalfBoscheck 166
11 Market-testinghealthcare:Managedcare,marketevolution
andthesearchforregulatoryprinciples
RalfBoscheck 191
12 Ongoverningnaturalresources
RalfBoscheck 208
Part IV Country/International level 225
13 Governingoilsupply:Fiscalregimes,NOCsandthesteering
ofresource-basedeconomies
RalfBoscheck 227
14 China–Externalimperativesandinternalreforms
Jean-PierreLehmann 259
vii Contents
15 EUconstitutionalgovernance:Failureasopportunity!?
RalfBoscheck 277
16 Onecompetitionstandardtoregulateglobaltradeandprotection?
RalfBoscheck 301
Part V An observation in closing 319
17 Addressingthemarketparadox
RalfBoscheck 321
Index 329
List of Figures, Boxes and Tables
Chapter1
Figure1.1 Coordinationoptionsandlevelsofgovernance page13
Chapter3
Figure3.1 Verticalcoordination–issues,meansandpresumed
welfareeffects 56
Figure3.2 ‘‘Effect-based’’blockexemptionwithinsystemofstrengthened
expostcontrol 62
Chapter4
Figure4.1 Majorlawsandreportsforcorporategovernance1992–2005 74
Figure4.2 Diffusionofselectedcorporategovernanceissues1994–2005 81
Chapter5
Figure5.1 Thedownwardspiral 94
Figure5.2 Forcesaffectingthefinancialhealthofcompanies 100
Chapter6
Box6.1 TheWebster’sEncyclopedicUnabridgedDictionaryofthe
EnglishLanguagedefines: 105
Chapter7
Figure7.1 Institutionalproxywars 120
Figure7.2 Institutionalhomogeneityandheterogeneityofresource
providers 126
Figure7.3 Europeantrustinbrands(Edelman,2003) 129
Figure7.4 Credibilityofspokespersons,USA(Edelman,2003) 129
Figure7.5 Trustininstitutions,Europe(Edelman,2003) 130
Chapter9
Figure9.1 Electricitygeneratedbyenergysources 157
Figure9.2 Airpollutioncontroltechnologiesforcoal-firedunits 158